Aurobindo Pharma to Acquire Additional 20% Stake in Chinese Joint Venture
By Shishta Dutta | Published at: Dec 23, 2025 07:19 PM IST

Mumbai, 23 December 2025: Aurobindo Pharma Limited informed stock exchanges that Helix Healthcare B.V., a wholly owned subsidiary of the Company (Helix), has entered into a binding agreement on December 22, 2025 with Shandong Luoxin Pharmaceutical Group Stock Co., Ltd., China (Shandong Luoxin), the joint venture partner in Luoxin Aurovitas Pharma (Chengdu) Co. Ltd, China (Luoxin Aurovitas), a 30:70 joint venture company between Helix and Shandong Luoxin, to acquire 20% additional ownership in Luoxin Aurovitas, for a cash consideration of USD 5.125 million.
The disclosure was pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Part A of Schedule III of the aforesaid regulations, is attached as ‘Annexure A’.
Purpose of the Acquisition
The object of the acquisition is to expand the manufacturing to economies of scale by adding 2 high Speed Lines and cater market demand
The initial acquisition of 20% stake would be acquired within next three months with the right to acquire balance 50% stake by December 2029 at an agreed price of USD 18.86 mn subject to certain terms and conditions.
Related Party Transaction, but Promoter Group has no Interest in Luoxin Aurovitas and Shandong Luoxin
The company stated that the proposed acquisition of 20% additional ownership in Luoxin Aurovitas would fall within the related party transaction since Luoxin Aurovitas is a joint venture company. However, they mentioned that Promoter / promoter group / group companies have no interest in Luoxin Aurovitas, the entity in which additional 20% is proposed to be acquired by Helix and also in Shandong Luoxin, the other joint venture partner. Also, no governmental or regulatory approvals are required for the proposed acquisition.
Shares Decline 0.65% Despite JV Announcement
Aurobindo Pharma Ltd share price (NSE:AUROPHARMA) the stock fell 0.65% or 7.90 points to close at 1216.60 on 23 of December, 2025. The stock started at ₹1230.00, reached a high of ₹1236.10 and touched a low of ₹1206.20 during the day. The company has a market worth approximately ₹70.66 thousand crore and trades at a price to earnings ratio of 20.86. In the last year, the stock has traded as high as ₹1,356.20 and as low as 1,010.00, with a dividend yield of 0.33%, which equates to a dividend of ₹1.00 per share paid quarterly.
References : https://www.bseindia.com/stock-share-price/aurobindo-pharma-ltd/auropharma/524804/corp-announcements/
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations

